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Lam Research beats Wall Street estimates in fiscal Q3, but shares fall

Last updated: 08:22 18 Apr 2018 EDT, First published: 03:22 18 Apr 2018 EDT

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Lam's revenue jumped 34% to US$2.9bn in the fiscal third-quarter

Lam Research (NASDAQ:LRCX), the semiconductor-chip gear maker, exceeded the estimates of Wall Street in its fiscal third-quarter earnings report and upped its guidance for the current quarter, thanks to an increase in shipments to Korea, China and Japan.

Net income for the three months until the close of March came to US$778.8mln, or US$4.33 per share, up from US$574.7mln or US$3.10 per share for the year-ago quarter. On an adjusted basis, the group’s earnings rose to US$4.79 per share, which surpassed the US$4.38 per share Wall Street analysts had expected.

Fourth quarter revenue seen beating consensus

Its revenue, meanwhile, jumped 34% to US$2.9bln, which handily beat the expectations of analysts who had predicted that Lam would earn US$2.86bln.

Shipments to Korean semi-conductor companies accounted for 36% of revenues, followed by Chinese companies which provided 17% of revenues and Japanese groups which drove 14% of revenues.

The company is predicting its revenues for the fiscal fourth quarter will come in at US$3.1bn, which beats New York analysts’ estimates of US$2.93bn.

“Lam continues to deliver strong performance, again setting new records highlighted by shipments exceeding US$3bln in the March quarter,” Martin Anstice, Lam’s chief executive said in a statement. “Fundamental to this achievement is increase strategic relevance enabling primary technology inflections now critical to our customers’ success.”

Lam, which is based in Fremont, California, creates wafer fabrication equipment to supply the semiconductor sector. The company also makes, designs and refurbishes semiconductor processing equipment used in the fabrication of integrated circuits.

In pre-market trade, Lam Research Corporation are down 5.16% at US$201.37 despite its fiscal third-quarter performance.

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